Household demand preferences for insecticide treated nets in Tanzania

The benefits of insecticide treated bednets (ITNs) for malaria prevention are well established. Considerable controversy exists, however, surrounding ITN distribution. One group argues that widespread free distribution is the preferred distribution method since it promotes quick and equitable ITN uptake. Another group promotes distribution via the commercial sector, claiming that it provides long term ITN access for all demographic groups.

Despite the controversy, little empirical evidence exists regarding household demand preferences for ITNs. There is limited research on ITN demand using contingent valuation methods but studies based on ITN sales during an actual delivery program are nonexistent. This study helps fill that void by estimating a demand model for ITNs using econometric methods and deriving the corresponding elasticities with respect to price, income and other exogenous variables. The setting for the study is Tanzania's national voucher-based ITN distribution program between 2004 and 2006. The data come from a nationally representative sample of households from 21 districts.

This study provides important information for the design of effective and efficient policies to increase ITN uptake. In particular, the estimated price and income elasticities reveal the amount of subsidy increase or income boost required to achieve specific gains in ITN uptake. The findings suggest that increased ITN subsidies alone will not achieve adequate increases in uptake for poor households due to a highly inelastic price demand. Other complementary interventions such as improved ITN accessibility, income growth, and health education are required to achieve widespread gains in uptake.